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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (7503)	10/2/1998 6:30:00 PM
From: Joseph G.	Read Replies (2) \| Respond to of 86076

<< Where does the money go?>> That's an easy one. I've answered this question soooo many times lately. -g- The answer is that stock market capitalization not "money", but the perceived (or "market") value of a sum of variable assets. "Money" is understood as "cash equivalents", e.g., actual cash, checking account deposit, a "money market" account - they are all "fixed assets", even though some may earn interest, the $ value is fixed and does not depend on what people think it should be. Stocks, or real estate are examples of "variable assets", their value, expressed in $, depends on "valuation" by people, or "market participants". $1 is a unit of measure, just like 1 erg is a unit in which energy is measured. PS. erg, nothing personal -g-